Overview of Corporate Knights Rating Methodology - The 2019 Global 100

 
The 2019 Global 100:
Overview of Corporate Knights Rating
            Methodology

          W W W. G L O B A L 1 0 0 . O R G
Global 100 fast facts
Overview                                                   Eligibility

 Annual ranking of corporate sustainability                Size: publicly-listed companies with gross
  performance.                                               revenue of a minimum of $PPP-currency $1B
                                                             (FY2017).
 Released each January during the World
  Economic Forum in Davos; published in leading             Corporate Knights Industry Group (CKIG) and
  media.                                                     geography: All industries and geographies are
                                                             automatically considered before screening out
                                                             companies from certain industries or with
                                                             identified egregious practices.

Approach                                                   Contact info and to learn more
 Ranking is based on publicly-disclosed data               Email research@corporateknights.com if you
  (e.g., financial filings, sustainability reports). All     would like to confirm the correct contacts for
  required datapoints are pre-populated.                     your organization.
  Submissions from companies are not required.
                                                            Sign up for email updates on future rankings
 Companies on the Global 100 Shortlist are                  and research from Corporate Knights and the
  contacted for data verification prior to project           Global 100.
  completion.
                                                           ▪ Visit www.global100.org for more details.
 Methodology is based on up to 21 key
  performance indicators (KPIs) covering
  resource management, employee management,
  financial management, clean revenue and
  supplier performance.

                                                                                                              1
Ranking is conducted by Corporate Knights, a specialized
media and investment research firm
Corporate Knights is a Toronto-based, employee-owned B Corp that operates in three segments:

  – Corporate Knights Magazine
    • World's largest circulating magazine focused on sustainability and responsible business.
    • Reaches 435,000 of the world’s most influential business and political decision-makers.

  – CK Research
    • CK Research offers a range of corporate sustainability ratings, investment product ratings and
       tools.
     • CK Research powers several external research projects (e.g. Newsweek Green Rankings, Carbon
       Clean 200, Sustainable Stock Exchange Ranking, Global Green Financial Index).

  – Council for Clean Capitalism
    • CEO-supported group catalyzing smart and efficient public policy.
    • Engages with leading public policy-makers.

                                                                                                       2
Philosophical perspective of the Global 100
 Relevance: The ranking is meant to be representative of business sustainability in
  the current socio-economic context.
 Transparency: The precise methodology of the ranking and the results of the
  process are fully disclosed.
 Objectivity: Eligible companies will only be assessed using quantitative data and
  performance indicators.
 Public data: Only data-points that are part of the public domain are used.
 Comparability: Companies are compared against their Corporate Knights (CK)
  Industry Group* peers based on performance indicators for which the underlying
  data are reasonably well disclosed by their CK Industry Group globally.
 Engagement: Companies eligible for the ranking are informed prior to the ranking,
  so as to have an opportunity to ensure the necessary data is made available
  publicly.
 Stakeholders: Stakeholder feedback is actively solicited throughout the project. A
  Panel of Experts, consisting of several sustainability practitioners, review and
  comment on all aspects of the methodology.
* The Corporate Knights Industry Group (CKIG) is constructed using combinations of FactSet RBICS SubSectors and Industry Groups to
ensure sufficient population for percentile ranking and pairing along resource productivity ratios and clean revenue exposures.

There are 97 CK Industry Groups.

                                                                                                                                     3
Overview of Global 100 ranking process
              Description                                        Details

               Publicly-listed companies.                          All companies that had a gross revenue in excess of $PPP-
                                                                     currency $1 billion during the 2017 fiscal year.
  Starting
  Universe
               Companies screened for :                            Screening criteria outlined in the next slide.
                – Sustainability disclosure
                                                                    Companies that pass all four screens constitute the 2019
                   practices
                                                                     Global 100 Shortlist.
                – Financial health
 Screening      – Product categories and
                   behaviour
                – Financial sanctions

  Selection    Companies in the 2019 Global                        Selection criteria outlined in the Rating Methodology
                100 Shortlist are scored on the                      section and detailed in Appendix II.
                21 KPIs.                                            Companies only scored on the ‘priority KPIs’ for their
                                                                     respective CK Industry Group, and all the Universal KPIs.

    The        The 2019 Global 100 is                              Each GICS* Sector is assigned a fixed number of slots in
 Global 100     populated.                                           the final Global 100 list (based on each sector’s
                                                                     contribution to the total market capitalization of the Global
               Consists of the top performing
                                                                     100’s financial benchmark, the MSCI ACWI).
                companies within each
                subsector.

                  * GICS classification is used due to the fact that MSCI, the maker of the MSCI ACWI
                  Index co-developed and uses GICS                                                                                   4
Screening criteria
                  Description                     Details

                   Companies that did not         A ‘priority KPI’ is any of the 21 KPIs whose weight is greater
                    disclose at least 75% of        than zero (0%) in a given CK Industry Group (see slides 7- 11)
                    the ‘non-universal priority     AND is not among the eight Universal KPIs below:
 Sustainability
                    KPIs’ by weight in their
  Disclosure                                         – The 8 Universal KPIs applicable for all CK Industry Groups
                    respective CK Industry
   Practices                                                are: Percentage Tax Paid, Pension Fund Status, Supplier
                    Group are eliminated.                   Sustainability, Women in Executive Management, Women
                                                            on Boards, Sustainability Pay Link, Score, Sanctions
                                                            Deductions and Clean Revenue.

                   Companies with an F             The F-Score (the Piotroski F-score) is a measure of the
  Financial         score below 5 are                financial strength of a company.
   Health           eliminated.                     The F-score is the sum of the scores for each of nine tests.
                                                     See Appendix I for details.

                   Companies involved in           Examples include weapons, tobacco, companies that lobby to
                    certain products or              block climate change policy.
   Product
                    services and behaviours         See Appendix IV for a full list of exclusionary screens.
  Categories
                    counterproductive to
                    sustainable development.

                   Companies that are              The screen measures the amount of money that companies
                    bottom quartile performers       paid out in qualifying fines, penalties or settlements over the
                    in the CK Financial              October 1, 2017 to November 30, 2018 period.
  Sanctions         Sanctions screen are            Sanctions include but are not limited to human rights, labour,
                    eliminated.                      environmental, anti-trust and community-related violations
                                                    See Appendix II for details.

                                                                                                                       5
Rating methodology

2019 Global 100 Ranking

                          6
Resource management KPIs
KPI                   Methodology

                      Revenue (converted to USD using PPP exchange rate) / (Energy use – renewable energy
Energy Productivity
                      use)

GHG Productivity      Revenue (converted to USD using PPP exchange rate) / GHG emissions: scope 1 & 2

Water Productivity    Revenue (converted to USD using PPP exchange rate) / Water use

                      Revenue (converted to USD using PPP exchange rate) / Non-recycled or reused waste
Waste Productivity
                      generated

VOC Productivity      Revenue (converted to USD using PPP exchange rate) / VOC emissions

NOx Productivity      Revenue (converted to USD using PPP exchange rate) / NOx emissions

SOx Productivity      Revenue (converted to USD using PPP exchange rate) / SOx emissions

Particulate Matter
                      Revenue (converted to USD using PPP exchange rate) / Particulate matter emissions
Productivity

           Companies will only be scored on the KPIs that are deemed “priority
          KPIs” for their respective CK Industry Group + the eight universal KPIs

                                                                                                            7
Financial management KPIs

KPI                             Methodology

Innovation Capacity             R&D expenses / revenue – three year trailing

Percentage Tax Paid             Cash tax amount paid / EBITDA – five year trailing (2013-2017)

CEO-Average Employee Pay        CEO compensation / average employee compensation

                                75%*(total DB and DC employer contributions/ FTE employees percentile-ranked
                                against peers) + 25%*(fair value of DB plan assets/FTE employees percentile-ranked
Pension Fund Status
                                against peers - (1-(fair value of DB plan assets/liability percentile-ranked against
                                peers) ). Note: DC contributions include 401(k), RRSPs and equivalents
Supplier Sustainability Score    The weighted CK Sustainability Score of a company’s largest suppliers (up to 10
                                  largest suppliers by spend).

          Companies will only be scored on the KPIs that are deemed “priority
           KPIs” for their respective CK Industry Group + the eight universal
                                          KPIs

                                                                                                                       8
Employee management KPIs

KPI                               Methodology

Injuries                          Lost time incidents rate

Fatalities                        Fatalities/ total number of fill-time equivalent employees

Employee Turnover                 Number of departures / average total employees

                                  Women representation in executive management team

Women in Executive Management
                                  (percentile-ranked against all companies in the universe)

                                  Women representation on board of directors
Women on Boards
                                  (percentile ranked against all companies in the universe)

Sustainability Pay Link           Mechanisms that link senior executive pay to sustainability targets

              Companies will only be scored on the KPIs that are deemed “priority
             KPIs” for their respective CK Industry Group + the eight universal KPIs

                                                                                                        9
Deduction due to sanctions

KPI                          Methodology

Sanction Deductions          Total fines penalties and settlements / revenue (one year)

         Companies will only be scored on the KPIs that are deemed “priority
        KPIs” for their respective CK Industry Group + the eight universal KPIs

                                                                                          10
Additional KPIs
KPI                                  Methodology

Clean Revenue                        Percentage of your total revenue derived from products and services that are
                                     categorized as “clean” according to the Corporate Knights open-source clean revenue
                                     taxonomy, which is informed by synthesis of the below sources and best practices:
                                     - Green Goods and Services (U.S. Bureau of Labor Statistics)
                                     - Environmental and clean Technology Products Economic Account (Statistics Canada)
                                     - Climate Bonds Taxonomy (Climate Bonds Initiative)
                                     - Sustainable Taxonomy (High-Level Expert Group in Sustainable Finance)
                                     - Environmental Goods and Services Sector (Eurostat)
                                     - China Green Bond Endorsed Project Catalogue
                                     - Green Bond Principles
                                     - TCFD recommended metrics
                                     - Other private sector rating agencies with green or sustainability taxonomy
                                     - Industry experts consultation covering all relevant CKIG subsectors with solicited
                                        feedback on industry definition of clean from leading industry experts and government
                                        agencies
 * This is a multi-year project by
 Corporate Knights to develop          Please click on the link below to view the full list of products and services that are
 and make publicly-available an                                      categorized as clean
 open-source definition of clean
 revenue categories for all sub-
 sectors;      we        welcome
 comments and suggestions in              https://docs.google.com/spreadsheets/d/1Yit1pphFcx-axawF_Y9G8ZBSJe9A-
 evolving and refining this clean                              xft2CSWNuBxAkw/edit?usp=sharing
 revenue definition.

                    This is a Universal KPI: all companies will only be scored on
                              this KPI irrespective of CK Industry Group

                                                                                                                                11
The Eight Universal KPIs

All companies, irrespective of CK Industry Group will still be assessed on all
eight universal KPIs:

-   Percentage Tax Paid,
-   Pension Fund Status,
-   Supplier Sustainability Score (except financial services organizations)
-   Women in Executive Management,
-   Women on Boards,
-   Sustainability Pay Link
-   Sanctions Deductions
-   Clean Revenue

                                                                                 12
Priority KPIs and weighting
scheme for each CK Industry
  Group under the updated
         methodology

                               13
Impact-weighted KPIs
        Philosophy: Each CK Industry Group accounts for a unique share of global impact for each individual KPI. The bigger the
        CK Industry Group's impact for a given performance metric is in relation to others in the CK Industry Group, the higher the
        weight of that KPI. Of the 21 indicators, 17 are weighted according to their relative impact, and five are assigned pre-
        determined fixed weights: Clean Revenue (50%), Sustainability Pay Link (5%), Supplier Sustainability Score (2.5%),
        Women in Executive Management (5%) and Women Board Members (5%). FSB TCFD priority sectors including financials,
        are assigned a fixed 50% weight for the Clean Revenue indicator to account for the risks and opportunities posed by the
        transition to a low carbon economy. The Supplier, Pay Link and Women diversity indicators are all considered to be
        universally applicable and thus assigned fixed weights.

        Impact calculation example - Energy use by the Electric Power Generators CK Industry Group as an example:
        The average Energy Productivity over the past three years for all companies in the coverage universe is calculated as well
        as the average energy productivity for each CK Industry Group. The weight assigned to the Energy Productivity indicator
        for a given subsector is a function of the ratio of the subsector average Energy Productivity / entire coverage universe
        Energy Productivity.

        Weighing KPIs according to impact – Electric Power Generators CK Industry Group as an example:
        Electric Power Generators has 21 applicable KPIs. Of these, Clean revenue, Women on Boards, Women in Executive
        Management, Supplier Sustainability Score and Sustainability Pay Link have fixed weights (50%, 5%, 5% 2.5% and 5%
        respectively). The remaining 16 KPIs, representing the remaining 32.5% of the weights are weighted in accordance to the
        relative magnitudes of their impacts: for instance, Electric Power Generators’ impact on water is 14.6 times the global
        average. Its weight is: 14.6/46.475 x 32.5% = 10.21%. Please note, the below figures are for illustrative purposes, they are
        not real.

                                                                                           CEO – Avg Pension Supplier                             Women       Women
                                                                     Innovation Percentage                                               Employee                      Sustain Sanctions Clean
               GHG   Water Waste     VOC      NOx      SO2    PM                           Employee Fund     Sustain Injuries Fatalities          in Exec       on
      Energy                                                          Capacity Tax Paid
                                                                                             Pay      Status  Score
                                                                                                                                         Turnover
                                                                                                                                                    Mgt       Boards
                                                                                                                                                                       Pay Link Deduction Revenue

Impact
ratio  5.5     9.2   14.6   1.2      0.03     2.22    3.31    1.14      0.2        1.9        0.61      3.7        -       0.78      1.9       0.54      -      -         -        -          -
Final
Weight 3.85% 6.43% 10.21% 0.84% 0.02% 1.55% 2.31% 0.80%                0.14%      1.33%      0.43%     2.59%    2.50%     0.55%     1.33%     0.38%      5%    5%        5%        0       50%

                                   * All figures presented here are rounded off to 1 d.p. Note: 46.475 is the total sum of the relative impact ratios.
                                   Note: Weighting scheme is updated annually based on new datasets                                                                                      14
Priority indicators and weights per CK Industry Group (note
updated weights for 2019 assessment will be published in
September)
               Please click on the icon below to open
               the list of priority indicators and weights
                      for each CK Industry Group.

              https://docs.google.com/spreadsheets/d/1H
              FwzQNeiB6V_WWQjsYfeP8NSZpumdi1H
              XK02zNeCJPc/edit#gid=241897220

                                                              15
Appendix I: The F-Score
 The F-Score (the Piotroski F-score) is a measure of the financial strength of a company.
 The F-Score is the sum of the scores for each of nine tests. Each test scores one for a pass
  and zero for a fail.
 The tests are:
  i) net profit is positive;
  ii) operating cash flow is positive;
  iii) net profit ÷ total assets at beginning of year, minus the same number for the previous
  year is positive;
  iv) operating cash flow is greater than net profit;
  v) long term debt ÷ by average assets has not increased;
  vi) the current ratio has increased (the change is more than zero, so even a negligible
  increase passes the test);
  vii) no raising of ordinary (common) equity over the previous year: this test is passed if the
  company did not issue any ordinary shares (excluding shares from dividend reinvestment
  plans and employee share plans);
  viii) gross margin has improved over the previous year; and
  ix) asset turnover has increased.

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Appendix II: The CK Financial Sanctions Screen
 The CK Financial Sanctions screen measures the amount of money that companies have paid out
  in qualifying fines, penalties or settlements on a trailing one-year (October 1, 2017 – November
  30, 2018) basis.
 Approach
  1. Data on fines, penalties or settlements is obtained for each company. Payouts may relate to
      repercussions from environmental accidents, generalized environmental pollution,
      infringement of labour standards, human rights-related abuses, price-fixing, child exploitation
      or violation of collective bargaining arrangements.
  2. Payouts that occurred from October 1, 2017 to November 30, 2018 are totaled and converted
      to USD (using the prevailing exchange rate at the time of the payout) and then divided by total
      revenue reported over the same period.
  3. The resulting ratio is then percent-ranked against all companies in the same CK Industry
      Group.
  4. Those companies that receive a bottom quartile percent score (e.g. 25% or below) are
      eliminated from contention for the Global 100.

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Appendix III: Detailed scoring methodology
#   Name of KPI Measurement                                            UN Sustainable Development Goals
1   Energy         In the first step, each company's Energy            GOAL 7: Affordable and Clean Energy (Ensure access to affordable,
    Productivity   Productivity is calculated. Energy Productivity     reliable, sustainable and modern energy for all)
                   is defined as Revenue ($PPP-converted) /            Targets - Examples
                                                                       A) access to electricity
                   Total Energy Use (GJ) – Renewable Energy
                                                                       B) Energy intensity measured in terms of primary energy and GDP
                   Use (GJ). It is then percent‐ranked against all     C) Investments in energy efficiency, facilitate access to clean energy research
                   of the same‐CK Industry Group peers within          and technology, including renewable energy, energy efficiency and advanced
                   the CK coverage universe, and multiplied by         and cleaner fossil-fuel technology, and promote investment in energy
                   0.75. In the second step, the change in each        infrastructure and clean energy technology
                   company’s Energy Productivity over a two-year
                   period is calculated and percent‐ranked against     GOAL 9: Industry, Innovation and Infrastructure (Build resilient
                   all of the same‐CK Industry Group peers within      infrastructure, promote inclusive and sustainable industrialization and
                                                                       foster innovation)
                   the CK coverage universe. If the company’s
                                                                       Targets - Examples
                   percent‐rank is top quartile, the percent‐rank is   A) Passenger and freight volumes, by mode of transport
                   multiplied by 1 and then by 0.25. If the            B) Increase the access of small-scale industrial and other enterprises, in
                   company’s percent‐rank is second quartile, the      particular in developing countries, to financial services, including affordable
                   percent‐rank is multiplied by 0.75 and then by      credit, and their integration into value chains and markets. Proportion of small-
                   0.25. If the company’s percent‐rank is third        scale industries with a loan or line of credit
                                                                       C) upgrade infrastructure and retrofit industries to make them sustainable, with
                   quartile, the percent‐rank is multiplied by 0.5
                                                                       increased resource-use efficiency and greater adoption of clean and
                   and then by 0.25. If the company’s                  environmentally sound technologies and industrial processes, reducing CO2
                   percent‐rank is bottom quartile, the                emission per unit
                   percent‐rank is multiplied by 0.25 and then by      D) Facilitate sustainable and resilient infrastructure development in developing
                   0.25. In the third step, the value from the first   countries through enhanced financial, technological and technical support to
                   and second steps are totaled.                       African countries, least developed countries, landlocked developing countries
                                                                       and small island developing States; infrastructure investments
                                                                       E) Significantly increase access to information and communications
                                                                       technology and strive to provide universal and affordable access to the
                                                                       Internet in least developed countries

                                                                                                                                                           18
Appendix III: Detailed scoring methodology
2   GHG            In the first step, each company’s Greenhouse        GOAL 9: Industry, Innovation and Infrastructure (Build resilient
    Productivity   Gas (GHG) Productivity is calculated. GHG           infrastructure, promote inclusive and sustainable industrialization and
                   Productivity is defined as Revenue ($PPP-           foster innovation)
                                                                       Targets - Examples
                   converted) / Total Greenhouse gas (GHG)
                                                                       A) Passenger and freight volumes, by mode of transport
                   Emissions (CO2e). Only Scope 1 and Scope 2          B) Increase the access of small-scale industrial and other enterprises, in
                   emissions are included according to the GHG         particular in developing countries, to financial services, including affordable
                   Protocol. It is then percent‐ranked against all     credit, and their integration into value chains and markets. Proportion of small-
                   of the same‐CK Industry Group peers within          scale industries with a loan or line of credit
                   the CK coverage universe, and multiplied by         C) upgrade infrastructure and retrofit industries to make them sustainable, with
                   0.75. In the second step, the change in each        increased resource-use efficiency and greater adoption of clean and
                                                                       environmentally sound technologies and industrial processes, reducing CO2
                   company’s GHG Productivity over a two-year
                                                                       emission per unit
                   period is calculated and percent‐ranked             D) Facilitate sustainable and resilient infrastructure development in developing
                   against all of the same‐CK Industry Group           countries through enhanced financial, technological and technical support to
                   peers within the CK coverage universe. If the       African countries, least developed countries, landlocked developing countries
                   company’s percent‐rank is top quartile, the         and small island developing States; infrastructure investments
                   percent‐rank is multiplied by 1 and then by         E) Significantly increase access to information and communications technology
                                                                       and strive to provide universal and affordable access to the Internet in least
                   0.25. If the company’s percent‐rank is second
                                                                       developed countries
                   quartile, the percent‐rank is multiplied by 0.75
                   and then by 0.25. If the company’s                  GOAL 13: Climate Action (Take urgent action to combat climate change
                   percent‐rank is third quartile, the percent‐rank    and its impacts)
                   is multiplied by 0.5 and then by 0.25. If the       Targets - Examples
                   company’s percent‐rank is bottom quartile, the      A) adopt and implement local disaster risk reduction strategies
                   percent‐rank is multiplied by 0.25 and then by      B) Integrate climate change measures into national policies, strategies and
                                                                       planning that lower GHG and adapt to advise impacts of climate change
                   0.25. In the third step, the value from the first
                                                                       C) Improve education (at all 3 levels, elementary, high school and post-sec),
                   and second steps are totaled.                       awareness-raising and human and institutional capacity on climate change
                                                                       mitigation, adaptation, impact reduction and early warning
                                                                       D) developed supporting developing countries, including finance, technology
                                                                       and capacity-building, for mechanisms for raising capacities for effective
                                                                       climate change-related planning and management, including focusing on
                                                                       women, youth and local and marginalized communities

                                                                                                                                                           19
Appendix III: Detailed scoring methodology (continued)

3    Water        In the first step, each company's Water             (UNSDGs 1/2)
     Productivity Productivity is calculated. Water Productivity      GOAL 6: Clean Water and Sanitation (Ensure availability and sustainable
                  is defined as Revenue ($PPP-converted) /            management of water and sanitation for all)
                                                                      Targets - Examples
                  Total water (m3). It is then percent‐ranked
                                                                      A) protect and restore water-related ecosystems, including mountains, forests,
                  against all of the same‐CK Industry Group           wetlands, rivers, aquifers and lakes
                  peers within the CK coverage universe, and          B) reduce water scarcity
                  multiplied by 0.75. In the second step, the
                  change in each company’s Water                      GOAL 9: Industry, Innovation and Infrastructure (Build resilient infrastructure,
                  Productivity over a two-year period is              promote inclusive and sustainable industrialization and foster innovation)
                  calculated and percent‐ranked against all of        Targets - Examples
                                                                      A) Passenger and freight volumes, by mode of transport
                  the same‐CK Industry Group peers within
                                                                      B) Increase the access of small-scale industrial and other enterprises, in particular
                  the CK coverage universe. If the company’s          in developing countries, to financial services, including affordable credit, and their
                  percent‐rank is top quartile, the percent‐rank      integration into value chains and markets. Proportion of small-scale industries with
                  is multiplied by 1 and then by 0.25. If the         a loan or line of credit
                  company’s percent‐rank is second quartile,          C) upgrade infrastructure and retrofit industries to make them sustainable, with
                  the percent‐rank is multiplied by 0.75 and          increased resource-use efficiency and greater adoption of clean and
                                                                      environmentally sound technologies and industrial processes, reducing CO2
                  then by 0.25. If the company’s percent‐rank
                                                                      emission per unit
                  is third quartile, the percent‐rank is multiplied   D) Facilitate sustainable and resilient infrastructure development in developing
                  by 0.5 and then by 0.25. If the company’s           countries through enhanced financial, technological and technical support to African
                  percent‐rank is bottom quartile, the                countries, least developed countries, landlocked developing countries and small
                  percent‐rank is multiplied by 0.25 and then         island developing States; infrastructure investments
                  by 0.25. In the third step, the value from the      E) Significantly increase access to information and communications technology and
                  first and second steps are totaled.                 strive to provide universal and affordable access to the Internet in least developed
                                                                      countries

                                                                                                                                                               20
Appendix III: Detailed scoring methodology (continued)

3    Water        In the first step, each company's Water               (UNSDGs continued 2/2)
     Productivity Productivity is calculated. Water Productivity is     GOAL 15: Life on Land (Protect, restore and promote sustainable use of
                  defined as Revenue ($PPP-converted) / Total           terrestrial ecosystems, sustainably manage forests, combat
                  water (m3). It is then percent‐ranked against all     desertification, and halt and reverse land degradation and halt
                                                                        biodiversity loss)
                  of the same‐CK Industry Group peers within the
                                                                        Targets - Examples
                  CK coverage universe, and multiplied by 0.75. In      A) ensure the conservation, restoration and sustainable use of terrestrial and
                  the second step, the change in each company’s         inland freshwater biodiversity and ecosystems and their services, in particular
                  Water Productivity over a two-year period is          forests, wetlands, mountains and drylands
                  calculated and percent‐ranked against all of the      Sustainable forest management
                  same‐CK Industry Group peers within the CK            Freshwater management
                                                                        Combating desertification; drought and floods
                  coverage universe. If the company’s
                                                                        B) conservation of protected areas, mountain ecosystems; reduce degradation
                  percent‐rank is top quartile, the percent‐rank is
                                                                        of natural habitat and biodiversity loss, and prevent extinction of threatened
                  multiplied by 1 and then by 0.25. If the              species, end poaching and trafficking of protected species
                  company’s percent‐rank is second quartile, the        C) prevent/control invasive/alien species
                  percent‐rank is multiplied by 0.75 and then by        D) Biodiversity policies
                  0.25. If the company’s percent‐rank is third
                  quartile, the percent‐rank is multiplied by 0.5 and
                  then by 0.25. If the company’s percent‐rank is
                  bottom quartile, the percent‐rank is multiplied by
                  0.25 and then by 0.25. In the third step, the value
                  from the first and second steps are totaled.

                                                                                                                                                          21
Appendix III: Detailed scoring methodology (continued)

4    Waste          In the first step, each company's Waste Productivity is     (UNSDGs 1/2)
     Productivity   calculated Waste Productivity is defined as Revenue         GOAL 9: Industry, Innovation and Infrastructure (Build resilient
                    ($PPP-converted) / [Total waste generated (metric           infrastructure, promote inclusive and sustainable industrialization
                                                                                and foster innovation)
                    tonnes) – waste recycled (metric tonnes)]. It is then
                                                                                Targets - Examples
                    percent‐ranked against all of the same‐CK Industry          A) Passenger and freight volumes, by mode of transport
                    Group peers within the CK coverage universe, and            B) Increase the access of small-scale industrial and other enterprises, in
                    multiplied by 0.75. In the second step, the change in       particular in developing countries, to financial services, including
                    each company’s Waste Productivity over a two-year           affordable credit, and their integration into value chains and markets.
                    period is calculated and percent‐ranked against all of      Proportion of small-scale industries with a loan or line of credit
                    the same‐CK Industry Group peers within the CK              C) upgrade infrastructure and retrofit industries to make them
                                                                                sustainable, with increased resource-use efficiency and greater
                    coverage universe. If the company’s percent‐rank is
                                                                                adoption of clean and environmentally sound technologies and industrial
                    top quartile, the percent‐rank is multiplied by 1 and       processes, reducing CO2 emission per unit
                    then by 0.25. If the company’s percent‐rank is second       D) Facilitate sustainable and resilient infrastructure development in
                    quartile, the percent‐rank is multiplied by 0.75 and        developing countries through enhanced financial, technological and
                    then by 0.25. If the company’s percent‐rank is third        technical support to African countries, least developed countries,
                    quartile, the percent‐rank is multiplied by 0.5 and then    landlocked developing countries and small island developing States;
                                                                                infrastructure investments
                    by 0.25. If the company’s percent‐rank is bottom
                                                                                E) Significantly increase access to information and communications
                    quartile, the percent‐rank is multiplied by 0.25 and        technology and strive to provide universal and affordable access to the
                    then by 0.25. In the third step, the value from the first   Internet in least developed countries
                    and second steps are totaled.

                                                                                                                                                             22
Appendix III: Detailed scoring methodology (continued)
4    Waste          In the first step, each company's Waste    (UNSDGs continued 2/2)
     Productivity   Productivity is calculated Waste           GOAL 11: Sustainable Cities and Communities (Make cities and human
     (continued)    Productivity is defined as Revenue         settlements inclusive, safe, resilient and sustainable)
                                                               Targets - Examples
                    ($PPP-converted) / [Total waste
                                                               A) ensure access for all to adequate, safe and affordable housing and basic services,
                    generated (metric tonnes) – waste          B) accessible and sustainable transport systems for all, improving road safety, notably
                    recycled (metric tonnes)]. It is then      by expanding public transport, with special attention to the needs of those in vulnerable
                    percent‐ranked against all of the          situations, women, children, persons with disabilities and older persons
                    same‐CK Industry Group peers within        C) Strengthen efforts to protect and safeguard the world’s cultural and natural heritage
                    the CK coverage universe, and              D) decrease deaths, missing persons and directly affected persons attributed to
                    multiplied by 0.75. In the second step,    disasters per 100,000 population, including water-related disasters, with a focus on
                                                               protecting the poor and people in vulnerable situations, and damaged infrastructure
                    the change in each company’s Waste
                                                               from disasters
                    Productivity over a two-year period is     E) reduce the adverse per capita environmental impact of cities, including by paying
                    calculated and percent‐ranked against      special attention to air quality and municipal and other waste management: air
                    all of the same‐CK Industry Group          pollutions, urban solid waste collection
                    peers within the CK coverage universe.     F) inclusive and accessible, green and public spaces, in particular for women and
                    If the company’s percent‐rank is top       children, older persons and persons with disabilities
                                                               G) integrated policies and plans towards inclusion, resource efficiency, mitigation and
                    quartile, the percent‐rank is multiplied
                                                               adaptation to climate change, resilience to disasters, and develop and implement
                    by 1 and then by 0.25. If the company’s    H) financial support to the least developed countries that is allocated to the construction
                    percent‐rank is second quartile, the       and retrofitting of sustainable, resilient and resource efficient buildings utilizing local
                    percent‐rank is multiplied by 0.75 and     materials
                    then by 0.25. If the company’s
                    percent‐rank is third quartile, the        GOAL 12: Responsible Consumption and Production (Ensure sustainable
                    percent‐rank is multiplied by 0.5 and      consumption and production patterns)
                                                               Targets - Examples
                    then by 0.25. If the company’s
                                                               A) Reducing food waste
                    percent‐rank is bottom quartile, the       B) Reducing hazardous waste, release to air, water and soil
                    percent‐rank is multiplied by 0.25 and     C) National recycling rate, tons of material recycled
                    then by 0.25. In the third step, the       D) Published sustainable reports
                    value from the first and second steps      E) Sustainable procurement policies
                    are totaled.                               F) Sustainable Development and Climate Change education in national education
                                                               policies
                                                               G) Sustainable tourism strategies and policies, and monitoring
                                                               H) Phase our fossil fuel subsidies

                                                                                                                                                             23
Appendix III: Detailed scoring methodology (continued)
5    VOC          In the first step, each company's       (UNSDGs 1/2)
     Productivity sub-indicator Productivity is           GOAL 3: Good Health and Well-being (Ensure healthy lives and promote well-being
                  calculated by dividing Revenue          for all at all ages)
                                                          Targets - Examples
                  ($PPP-converted) by the air
                                                          A) reduce the global maternal mortality ratio; reproductive health-care services
                  pollutant. It is then percent‐ranked    B) end the epidemics of AIDS, tuberculosis, malaria and neglected tropical diseases and
                  against all of the same‐CK Industry     combat hepatitis, water-borne diseases and other communicable diseases; substance
                  Group peers within the CK               abuse prevention
6    NOx          coverage universe, and multiplied       C) Achieve universal health coverage, including financial risk protection, access to quality
                                                          essential health-care services and access to safe, effective, quality and affordable essential
     Productivity by 0.75. In the second step, the
                  change in each company’s sub-           medicines and vaccines for all
                                                          D) reduce the number of deaths and illnesses from hazardous chemicals and air, water and
                  indicator Productivity over a two-
                                                          soil pollution and contamination
                  year period is calculated and           E) health worker training and retention
                  percent‐ranked against all of the
                  same‐CK Industry Group peers            GOAL 9: Industry, Innovation and Infrastructure (Build resilient infrastructure,
                  within the CK coverage universe. If     promote inclusive and sustainable industrialization and foster innovation)
7    SOx                                                  Targets - Examples
                  the company’s percent‐rank is top
     Productivity                                         A) Passenger and freight volumes, by mode of transport
                  quartile, the percent‐rank is
                                                          B) Increase the access of small-scale industrial and other enterprises, in particular in
                  multiplied by 1 and then by 0.25. If    developing countries, to financial services, including affordable credit, and their integration
                  the company’s percent‐rank is           into value chains and markets. Proportion of small-scale industries with a loan or line of
                  second quartile, the percent‐rank is    credit
                  multiplied by 0.75 and then by 0.25.    C) upgrade infrastructure and retrofit industries to make them sustainable, with increased
                  If the company’s percent‐rank is        resource-use efficiency and greater adoption of clean and environmentally sound
8    Particulate third quartile, the percent‐rank is      technologies and industrial processes, reducing CO2 emission per unit
     Matter                                               D) Facilitate sustainable and resilient infrastructure development in developing countries
                  multiplied by 0.5 and then by 0.25.
     Productivity                                         through enhanced financial, technological and technical support to African countries, least
                  If the company’s percent‐rank is        developed countries, landlocked developing countries and small island developing States;
                  bottom quartile, the percent‐rank is    infrastructure investments
                  multiplied by 0.25 and then by 0.25.    E) Significantly increase access to information and communications technology and strive to
                  In the third step, the value from the   provide universal and affordable access to the Internet in least developed countries
                  first and second steps are totaled.

                                                                                                                                                            24
Appendix III: Detailed scoring methodology (continued)
5    VOC Productivity   In the first step, each company's      (UNSDGs continued 2/2)
                        sub-indicator Productivity is          GOAL 11: Sustainable Cities and Communities (Make cities and human
                        calculated by dividing Revenue         settlements inclusive, safe, resilient and sustainable)
                                                               Targets - Examples
                        ($PPP-converted) by the air
                                                               A) ensure access for all to adequate, safe and affordable housing and basic services,
                        pollutant. It is then percent‐ranked   B) accessible and sustainable transport systems for all, improving road safety, notably
                        against all of the same‐CK Industry    by expanding public transport, with special attention to the needs of those in vulnerable
                        Group peers within the CK              situations, women, children, persons with disabilities and older persons
                        coverage universe, and multiplied      C) Strengthen efforts to protect and safeguard the world’s cultural and natural heritage
6    NOx Productivity
                        by 0.75. In the second step, the       D) decrease deaths, missing persons and directly affected persons attributed to
                        change in each company’s sub-          disasters per 100,000 population, including water-related disasters, with a focus on
                                                               protecting the poor and people in vulnerable situations, and damaged infrastructure
                        indicator Productivity over a two-
                                                               from disasters
                        year period is calculated and          E) reduce the adverse per capita environmental impact of cities, including by paying
                        percent‐ranked against all of the      special attention to air quality and municipal and other waste management: air
                        same‐CK Industry Group peers           pollutions, urban solid waste collection
                        within the CK coverage universe. If    F) inclusive and accessible, green and public spaces, in particular for women and
7    SOx Productivity the company’s percent‐rank is top        children, older persons and persons with disabilities
                                                               G) integrated policies and plans towards inclusion, resource efficiency, mitigation and
                        quartile, the percent‐rank is
                                                               adaptation to climate change, resilience to disasters, and develop and implement
                        multiplied by 1 and then by 0.25. If   H) financial support to the least developed countries that is allocated to the
                        the company’s percent‐rank is          construction and retrofitting of sustainable, resilient and resource efficient buildings
                        second quartile, the percent‐rank      utilizing local materials
                        is multiplied by 0.75 and then by
                        0.25. If the company’s                 GOAL 12: Responsible Consumption and Production (Ensure sustainable
                                                               consumption and production patterns)
8    Particulate Matter percent‐rank is third quartile, the
                                                               Targets - Examples
     Productivity       percent‐rank is multiplied by 0.5
                                                               A) Reducing food waste
                        and then by 0.25. If the company’s     B) Reducing hazardous waste, release to air, water and soil
                        percent‐rank is bottom quartile, the   C) National recycling rate, tons of material recycled
                        percent‐rank is multiplied by 0.25     D) Published sustainable reports
                        and then by 0.25. In the third step,   E) Sustainable procurement policies
                        the value from the first and second    F) Sustainable Development and Climate Change education in national education
                        steps are totaled.                     policies
                                                               G) Sustainable tourism strategies and policies, and monitoring
                                                               H) Phase our fossil fuel subsidies

                                                                                                                                                           25
Appendix III: Detailed scoring methodology (continued)

9    Innovation In the first step, each   GOAL 8: Decent Work and Economic Growth (Promote sustained, inclusive and sustainable
     Capacity   company's Innovation      economic growth, full and productive employment and decent work for all)
                Capacity score is         Target - Examples
                                          A) Achieve higher levels of economic productivity through diversification, technological upgrading and
                determined by
                                          innovation, including through a focus on high-value added and labour-intensive sectors
                measuring the ratio of    B) policies that support productive activities, decent job creation, entrepreneurship, creativity and
                research and              innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises,
                development (R&D)         including through access to financial services
                expenditures to total     C) labour rights
                revenue averaged over     D) devise and implement policies to promote sustainable tourism that creates jobs and promotes local
                a trailing three‐year     culture and products
                                          E) encourage and expand access to banking, insurance and financial services for all
                period. In the second
                step, each company's      GOAL 9: Industry, Innovation and Infrastructure (Build resilient infrastructure, promote inclusive
                Innovation Capacity       and sustainable industrialization and foster innovation )
                score is                  Targets - Examples
                percent‐ranked against    A) Passenger and freight volumes, by mode of transport
                all of the same‐CK        B) Increase the access of small-scale industrial and other enterprises, in particular in developing
                                          countries, to financial services, including affordable credit, and their integration into value chains and
                Industry Group peers
                                          markets. Proportion of small-scale industries with a loan or line of credit
                within the CK coverage    C) upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use
                universe.                 efficiency and greater adoption of clean and environmentally sound technologies and industrial processes,
                                          reducing CO2 emission per unit
                                          D) Facilitate sustainable and resilient infrastructure development in developing countries through
                                          enhanced financial, technological and technical support to African countries, least developed countries,
                                          landlocked developing countries and small island developing States; infrastructure investments
                                          E) Significantly increase access to information and communications technology and strive to provide
                                          universal and affordable access to the Internet in least developed countries

                                                                                                                                                       26
Appendix III: Detailed scoring methodology (continued)

10   Percentage In the first step, each company's          GOAL 10: Reduced Inequality (Reduce inequality within and among countries)
     Tax Paid   Percentage Tax Paid is calculated as       Targets - Examples
                the amount of taxes paid in cash over a    A) empower and promote the social, economic and political inclusion of all, irrespective
                                                           of age, sex, disability, race, ethnicity, origin, religion or economic or other status: equal
                trailing five year period (2013-2017)
                                                           wage, reduce discrimination and harassment, migration processes
                divided by their total EBITDA over the     B) Improve the regulation and monitoring of global financial markets and institutions and
                same period. Companies score a 0% in       strengthen the implementation of such regulations
                the event that their total EBITDA or       C) official development assistance and financial flows, including foreign direct
                taxes paid in cash is zero or lower over   investment, to States where the need is greatest, in particular least; resource flows for
                the five year period (2013-2017). In the   development; remittance costs, zero-tariff
                second step, each company's
                Percentage Tax Paid is percent‐ranked
                against all of the same‐CK Industry
                Group peers within the CK coverage
                universe.

                                                                                                                                                           27
Appendix III: Detailed scoring methodology (continued)

11   CEO-       Each company's CEO to          GOAL 8: Decent Work and Economic Growth (Promote sustained, inclusive and
     Average    Average Employee Pay           sustainable economic growth, full and productive employment and decent work for all)
     Employee   ratio is calculated as total   Target - Examples
                                               A) Achieve higher levels of economic productivity through diversification, technological upgrading
     Pay        CEO compensation divided
                                               and innovation, including through a focus on high-value added and labour-intensive sectors
                by average employee            B) policies that support productive activities, decent job creation, entrepreneurship, creativity and
                compensation. Average          innovation, and encourage the formalization and growth of micro-, small- and medium-sized
                employee compensation is       enterprises, including through access to financial services
                calculated by dividing the     C) labour rights
                company’s total wage bill      D) devise and implement policies to promote sustainable tourism that creates jobs and promotes
                by the total number of         local culture and products
                                               E) encourage and expand access to banking, insurance and financial services for all
                employees. Each
                company's CEO to Average
                                               GOAL 10: Reduced Inequality (Reduce inequality within and among countries)
                Employee Pay ratio is          Targets - Examples
                percent‐ranked against all     A) empower and promote the social, economic and political inclusion of all, irrespective of age,
                of the same‐CK Industry        sex, disability, race, ethnicity, origin, religion or economic or other status: equal wage, reduce
                Group peers within the CK      discrimination and harassment, migration processes
                coverage universe. [The        B) Improve the regulation and monitoring of global financial markets and institutions and
                                               strengthen the implementation of such regulations
                lower the ratio, the higher
                                               C) official development assistance and financial flows, including foreign direct investment, to
                the rank.]                     States where the need is greatest, in particular least; resource flows for development; remittance
                                               costs, zero-tariff

                                                                                                                                                       28
Appendix III: Detailed scoring methodology (continued)

12   Pension       In the first step, the sum of the company’s       GOAL 1: No Poverty (End poverty in all its forms everywhere)
     Fund Status   contribution to the defined benefit and defined   Targets - Examples
                   contribution pension plans are added up, then     A) ensure that all men and women, have equal rights to economic resources, as
                                                                     well as access to basic services, ownership and control over land and other
                   divided by the total number of full-time
                                                                     forms of property, inheritance, natural resources, appropriate new technology
                   equivalent employees. This ratio is then          and financial services, including microfinance
                   percent-ranked against all of the same-CK         B) build the resilience of the poor and those in vulnerable situations and reduce
                   Industry Group peers within the CK coverage       their exposure and vulnerability to climate-related extreme events and other
                   universe. This is labelled as “A”                 economic, social and environmental shocks and disasters
                                                                     C) government spending on essential services (education, health and social
                   In the second step, the fair value of the         protection)
                   defined benefit plan assets is divided by the
                                                                    GOAL 8: Decent Work and Economic Growth (Promote sustained,
                   total number of full-time equivalent             inclusive and sustainable economic growth, full and productive
                   employees; this ratio is then percent-ranked     employment and decent work for all)
                   against all of the same-CK Industry Group        Target - Examples
                   peers within the CK coverage universe. This      A) Achieve higher levels of economic productivity through diversification,
                   is labelled as “B”,                              technological upgrading and innovation, including through a focus on high-value
                                                                    added and labour-intensive sectors
                                                                    B) policies that support productive activities, decent job creation,
                   In the third step, the fair value of the defined entrepreneurship, creativity and innovation, and encourage the formalization and
                   benefit plan assets is divided by the projected growth of micro-, small- and medium-sized enterprises, including through
                   defined benefit plan obligations, then percent- access to financial services
                   ranked against all of the same-CK Industry       C) labour rights
                   Group peers within the CK coverage               D) devise and implement policies to promote sustainable tourism that creates
                   universe. This is labelled as “C”.               jobs and promotes local culture and products
                                                                    E) encourage and expand access to banking, insurance and financial services
                                                                    for all
                   The Pension Fund Status Score is arrived at
                   by the following formula: (0.75 x A) + 0.25(B –
                   (1 – C))

                                                                                                                                                         29
Appendix III: Detailed scoring methodology (continued)
13   Supplier       Each company's          (UNSDGs 1/7)
     Sustainability largest suppliers (up   GOAL 1: No Poverty (End poverty in all its forms everywhere)
     Score          to ten) by total        Targets - Examples
                                            A) ensure that all men and women, have equal rights to economic resources, as well as access to basic
                    spend are identified
                                            services, ownership and control over land and other forms of property, inheritance, natural resources,
                    based on FactSet        appropriate new technology and financial services, including microfinance
                    data. The suppliers     B) build the resilience of the poor and those in vulnerable situations and reduce their exposure and
                    are then weighted       vulnerability to climate-related extreme events and other economic, social and environmental shocks and
                    and scored using        disasters
                    the Global 100          C) government spending on essential services (education, health and social protection)
                    methodology,
                                            GOAL 2: Zero Hunger (End hunger, achieve food security and improved nutrition and promote
                    excluding the
                                            sustainable agriculture)
                    Supplier                Targets - Examples
                    Sustainability Score    A) double the agricultural productivity and incomes of small-scale food producers, in particular women,
                    KPI.                    indigenous peoples, family farmers, pastoralists and fishers,
                                            B)Increase investment, including through enhanced international cooperation, in rural infrastructure,
                                            agricultural research and extension services, technology development and plant and livestock gene banks
                                            C) Correct and prevent trade restrictions and distortions in world agricultural markets, food prices

                                            GOAL 3: Good Health and Well-being (Ensure healthy lives and promote well-being for all at all
                                            ages)
                                            Targets - Examples
                                            A) reduce the global maternal mortality ratio; reproductive health-care services
                                            B) end the epidemics of AIDS, tuberculosis, malaria and neglected tropical diseases and combat hepatitis,
                                            water-borne diseases and other communicable diseases; substance abuse prevention
                                            C) Achieve universal health coverage, including financial risk protection, access to quality essential
                                            health-care services and access to safe, effective, quality and affordable essential medicines and
                                            vaccines for all
                                            D) reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution
                                            and contamination
                                            E) health worker training and retention

                                                                                                                                                        30
Appendix III: Detailed scoring methodology (continued)

13   Supplier       Each company's          (UNSDGs continued 2/7)
     Sustainability largest suppliers (up   GOAL 5: Gender Equality (Achieve gender equality and empower all women and girls)
     Score          to ten) by total        Targets - Examples
                                            A) End all forms of discrimination against all women and girls everywhere, Proportion of women in
                    spend are identified
                                            managerial positions, govt, etc.
                    based on FactSet        B) Recognize and value unpaid care and domestic work through the provision of public services,
                    data. The suppliers     infrastructure and social protection policies and the promotion of shared responsibility within the
                    are then weighted       household and the family as nationally appropriate
                    and scored using        C) Ensure universal access to sexual and reproductive health and reproductive rights
                    the Global 100
                    methodology,            GOAL 6: Clean Water and Sanitation (Ensure availability and sustainable management of water
                                            and sanitation for all)
                    excluding the
                                            Targets - Examples
                    Supplier                A) protect and restore water-related ecosystems, including mountains, forests, wetlands, rivers, aquifers
                    Sustainability Score    and lakes
                    KPI.                    B) reduce water scarcity

                                            GOAL 7: Affordable and Clean Energy (Ensure access to affordable, reliable, sustainable and
                                            modern energy for all)
                                            Targets - Examples
                                            A) access to electricity
                                            B) Energy intensity measured in terms of primary energy and GDP
                                            C) Investments in energy efficiency, facilitate access to clean energy research and technology, including
                                            renewable energy, energy efficiency and advanced and cleaner fossil-fuel technology, and promote
                                            investment in energy infrastructure and clean energy technology

                                                                                                                                                        31
Appendix III: Detailed scoring methodology (continued)

13   Supplier       Each company's          (UNSDGs continued 3/7)
     Sustainability largest suppliers (up   GOAL 8: Decent Work and Economic Growth (Promote sustained, inclusive and sustainable
     Score          to ten) by total        economic growth, full and productive employment and decent work for all)
                                            Target - Examples
                    spend are identified
                                            A) Achieve higher levels of economic productivity through diversification, technological upgrading and
                    based on FactSet        innovation, including through a focus on high-value added and labour-intensive sectors
                    data. The suppliers     B) policies that support productive activities, decent job creation, entrepreneurship, creativity and
                    are then weighted       innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises,
                    and scored using        including through access to financial services
                    the Global 100          C) labour rights
                    methodology,            D) devise and implement policies to promote sustainable tourism that creates jobs and promotes local
                                            culture and products
                    excluding the
                                            E) encourage and expand access to banking, insurance and financial services for all
                    Supplier
                    Sustainability Score    GOAL 9: Industry, Innovation and Infrastructure (Build resilient infrastructure, promote inclusive
                    KPI.                    and sustainable industrialization and foster innovation )
                                            Targets - Examples
                                            A) Passenger and freight volumes, by mode of transport
                                            B) Increase the access of small-scale industrial and other enterprises, in particular in developing
                                            countries, to financial services, including affordable credit, and their integration into value chains and
                                            markets. Proportion of small-scale industries with a loan or line of credit
                                            C) upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use
                                            efficiency and greater adoption of clean and environmentally sound technologies and industrial processes,
                                            reducing CO2 emission per unit
                                            D) Facilitate sustainable and resilient infrastructure development in developing countries through
                                            enhanced financial, technological and technical support to African countries, least developed countries,
                                            landlocked developing countries and small island developing States; infrastructure investments
                                            E) Significantly increase access to information and communications technology and strive to provide
                                            universal and affordable access to the Internet in least developed countries

                                                                                                                                                         32
Appendix III: Detailed scoring methodology (continued)

13   Supplier       Each company's          (UNSDGs continued 4/7)
     Sustainability largest suppliers (up   GOAL 10: Reduced Inequality (Reduce inequality within and among countries)
     Score          to ten) by total        Targets - Examples
                                            A) empower and promote the social, economic and political inclusion of all, irrespective of age, sex,
                    spend are identified
                                            disability, race, ethnicity, origin, religion or economic or other status: equal wage, reduce discrimination
                    based on FactSet        and harassment, migration processes
                    data. The suppliers     B) Improve the regulation and monitoring of global financial markets and institutions and strengthen the
                    are then weighted       implementation of such regulations
                    and scored using        C) official development assistance and financial flows, including foreign direct investment, to States where
                    the Global 100          the need is greatest, in particular least; resource flows for development; remittance costs, zero-tariff
                    methodology,
                                            GOAL 11: Sustainable Cities and Communities (Make cities and human settlements inclusive,
                    excluding the
                                            safe, resilient and sustainable)
                    Supplier                Targets - Examples
                    Sustainability Score    A) ensure access for all to adequate, safe and affordable housing and basic services,
                    KPI.                    B) accessible and sustainable transport systems for all, improving road safety, notably by expanding
                                            public transport, with special attention to the needs of those in vulnerable situations, women, children,
                                            persons with disabilities and older persons
                                            C) Strengthen efforts to protect and safeguard the world’s cultural and natural heritage
                                            D) decrease deaths, missing persons and directly affected persons attributed to disasters per 100,000
                                            population, including water-related disasters, with a focus on protecting the poor and people in vulnerable
                                            situations, and damaged infrastructure from disasters
                                            E) reduce the adverse per capita environmental impact of cities, including by paying special attention to
                                            air quality and municipal and other waste management: air pollutions, urban solid waste collection
                                            F) inclusive and accessible, green and public spaces, in particular for women and children, older persons
                                            and persons with disabilities
                                            G) integrated policies and plans towards inclusion, resource efficiency, mitigation and adaptation to
                                            climate change, resilience to disasters, and develop and implement
                                            H) financial support to the least developed countries that is allocated to the construction and retrofitting of
                                            sustainable, resilient and resource efficient buildings utilizing local materials

                                                                                                                                                              33
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